How Fairtrade really works

There is a boom in quality labels and food labels. Overall, Austria's consumers are confronted with 100 quality labels. Suggested are idyllic ideas that often do not meet the expectations.

The social label Fairtrade has gained consumer confidence in Austria. Austria is now one of the organization's most dynamic markets. In Germany, "good trade" recorded sales growth of around seven percent. The estimated total sales of Fairtrade products in 2012 total 107 million euros. By comparison, it was 2006 still 42 million euros in sales. Numbers that are loud Fairtrade AustriaManaging Director Austria Hartwig Kirner should be further exceeded. "For the year 2014, we expect a continuation of the positive trend of recent years."

The supermarket chains have long since hit the nerve of consumers and are constantly expanding their product range. "We observe that people's awareness of social justice has steadily increased in recent years. Customers like to dig deeper into their pockets for fair-trade products, "says Spar's CEO Gerhard Drexel.

Growth drivers in the retail sector are sweets (plus 32 percent on 192 tons), coffee and fresh fruits (plus six percent each). The largest growth rates are in the Convenience category (compotes, spreads, preserves). Above all, canned pineapples from Thailand were the first Fairtrade canned product in Austrian trade to increase the volume of 55 tonnes in 2011 to 192 tonnes.

Regular checks

But do customers in the northern hemisphere get Fairtrade when Fairtrade is on it? There are, of course, external controls by a testing institute, and most of the raw materials on the products are traceable. Regular checks by the partner organization FLO-Cert ensure that the Fairtrade standards are largely adhered to, which include not only the ban on genetically modified seeds, but also freedom of assembly, health and safety regulations and the prohibition of exploitative child labor.

Members who violate the rules will be suspended and eventually de-certified. Nevertheless, cases of abuse can not be ruled out. "Of course, there are also black sheep, which can not be avoided," says Kirner. But there is no certification system that could prevent abuse to 100 percent.

Minimum price and social standards

In any case, the Fairtrade Label guarantees minimum social standards for producers in the producing countries. Worldwide, around 70 percent of the Fairtrade Seal products come from small farmer cooperatives. This is why Fairtrade focuses on farming families, who have organized themselves into small farmer cooperatives, as is the case in coffee production, for example. The network currently includes around 1,3 millions of smallholders and employees from 70 countries.

Products: at least 20 percent Fairtrade

And Fairtrade offers something to local producers. For many small farmers, the seal is the only chance to gain access to the world market. As soon as a manufacturer obtains all available ingredients from certified Fairtrade sources and the respective product consists of at least 20 percent of such components, the producer can adhere to the banner of Fairtrade.

And this is where Fairtrade comes in with its minimum price: if the world market price rises above this minimum price, the cooperatives receive the higher market price. If the world market price is below the Fairtrade minimum price, it must still be paid by the dealer to the producer group. It must be kept in mind that several tons of certified products can not be sold on appropriate terms. "The potential for Fairtrade would be there," says Kirner. On average, Fairtrade licensees have to sell a whopping 60 percent of their crops at market prices.

Fair trade vs. fair Trade

Fairtrade is a trademark that manufacturers must be certified to use. However, this does not exclude that products without Fairtrade logo were not also fairly traded. In many cases, fairness even exceeds that of Fairtrade. For some dealers and manufacturers, it is important to know their source of supply personally. Some products exceed the Fairtrade brand's mandatory 20 percentage of ingredients. Contrary to that, of course, there is also the so-called "green washing" here.

Promote fair trade

An essential factor is the gastronomy. It would be best to always ask for a coffee at a coffee house visit. Because if the customer's request is there, then something will move. But also in the trade you can ask for fair traders!

Photo / Video: Helmut Melzer, Fairtrade Austria.